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Daddy always said that only a sucker buys a new car. Let some other fool take the depreciation on it. I usually buy them at 10 years old, usually paying 1/3 o
by sparrish 3y ago
Daddy always said that only a sucker buys a new car. Let some other fool take the depreciation on it.
I usually buy them at 10 years old, usually paying 1/3 of new, and run them for another 10 years then sell them for roughly 1/2 of what I bought them for.
Sure, I'm the fool taking the second decade of depreciation but that's far less than the first decade and the vehicles I choose are generally very reliable out to 20 years with little maintenance. After 20 years, I've found they generally start to nickel and dime you or leave you on the side of the road.
- xnx 3y agoNew cars are for suckers, but used cars aren't the deal they once were. https://site.manheim.com/en/services/consulting/used-vehicle-value-index.html https://site.manheim.com/en/services/consulting/used-vehicle...
- afpx 3y agoI used to hear this wisdom when I was a kid. But, it hasn't been my experience. I'm not too picky, so I just buy the last year's model of the 3rd best car in its class with the lowest APR deal. I drive it until the warranty is up and sell it to Car Max, and on average it only costs me $2-3k a year. I'm sure dealing with used cars saves slightly more than that, but is it worth the hassle?
- pc86 3y agoWe spent a decent amount of time discussing this is one of my econ classes in college, and while I can't speak to this person's experience, statistically speaking, your best bet strictly from a financial standpoint is to buy a 2-3 year old vehicle and run it until it is about 10 years old, then sell it. Beyond that you start running into mechanical issues that will wipe out any savings over time.
- smartbit 3y agoUnless it is a Toyota eg Corolla which last much longer than 10 years.